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Brief Insurance Glossary

Published Date: Dec 12, 2017

Brief Insurance Glossary

 As Insurance can be a very unfamiliar topic to many people. We have put together a basic glossary of the most common insurance technical terms in the field. I hope this can be helpful!

Adjuster - A representative of the insurer who seeks to determine the extent of the insurer's liability for loss when a claim is submitted.

Blanket Policy - An insurance policy that coverts two or more properties or the same property at two o more locations.

For example, a blanket insurance policy may provide coverage for both a house and the furniture inside it.

Alternatively, a policy may cover a person's furniture both at his/her house and in his/her storage unit in another town

Claim - A demand made by the insured, or the insured's beneficiary, for payment of the benefits as provided by the policy.

Coinsurance – A small percentage of the claim that the policy holder agrees to pay. It is an additional deductible.

Coverage - A risk that the insurance company agrees to assume.

Credit Note – When cancelling certain policies this is a document that credits the pending amount of money spent that can be applied for a same kind of policy.

Deductible - Portion of the insured loss paid by the policy holder.

Endorsement - A modified/corrected version of the same policy issued by the insurance company.

Exclusions - Items or conditions that are not covered by the general insurance contract.

Hydro-meteorological Phenoma – Natural disaster that can damage property and persons such as floods, tropical cyclones, drought, hurricanes and desertification.

Indemnity - The legal term for repairing a loss or damage. In most cases this means the insurance company paying the corresponding sum of money to the affected person.

Insurance Agency, Agent, Broker – The person that sells clients the insurance company’s policy and attends the client directly.

Insurance Company – The company that assumes the economical risk of the insurance policy.

Liability – The state of being responsible for something.

Market Value – This is the value of a specific property in the current market. Many times the insurance company agrees to cover the expenses based on the market value.

Medical Tourism Insurance – This insurance is designed to cover the risk of a medical complication when going abroad for a specific medical treatment.

Policy - The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clause, riders, endorsements, and papers attached thereto and made a part thereof.

Policy Fee – Additional premium for the issue of the policy.

Replacement Value – This is the cost to replace a damage of a property including material and the labor costs.

Reimbursement - When the insurance company pays the insured the expenses made for a claim.

Third Part Liability - A product that offers mainly medical coverage during a trip as well as others

Total Premium – The total cost of a policy.

Travel Insurance - A product that offers mainly medical coverage during a trip as well as others

Waiting Period – In health insurance mostly, it is the period that when concluded, the coverage begins to be effective.